Formatting necessary for an accurate reading of this text may be shown by tags (e.g., <DELETED> or <BOLD>) or may be missing from this TXT display. For complete and accurate display of this text, see the PDF.
[Page S2764]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PPP FOR CRITICAL ACCESS HOSPITALS ACT
Ms. COLLINS. Mr. President, I rise today to introduce legislation to
allow nonprofit critical access hospitals (as defined by the Centers
for Medicare & Medicaid Services) that are undergoing Chapter 11
bankruptcy reorganizations to apply for forgivable loans under the
Paycheck Protection Program, if they are otherwise eligible. The
language of my bill, the ``PPP Critical Access Hospitals Act,'' mirrors
language originally introduced by Rep. Golden that was included in the
House-passed ``HEROES Act.''
While hospitals are not prohibited from participating in the PPP,
those that have previously or are currently under bankruptcy protection
have been unable to access PPP funds, due to an interpretation of
underlying Small Business Administration 7(a) program rules. While I
recognize the importance of protecting taxpayer investments in the SBA
7(a) program, the PPP program, which I coauthored along with Senators
Rubio, Cardin, and Shaheen, is by design largely forgivable when used
for eligible expenditures.
The hospitals that would benefit from this bill are critical
infrastructure in the COVID-19 response effort, and many have
experienced substantial increases in expenses associated with preparing
for and responding to the pandemic. They simultaneously faced sharp
declines in revenue associated with declining patient volumes due to
the cancellation of routine and elective procedures, in order to
protect public health and conserve limited supplies of Personal
Protective Equipment, consistent with guidance from the Centers for
Medicare and Medicaid Services.
While these entities are few in number, they are vitally important to
the communities they serve, both as frontline health care providers
during this public health emergency and as anchor institutions that
provide the paychecks and local economic stability that Congress
intended the Paycheck Protection Program to preserve. These
institutions need temporary financial assistance to weather sharp
revenue decreases that have resulted from Federal and State
instructions to cancel elective medical procedures as part of COVID-19
response preparedness. Expanding the PPP to include these key employers
will allow them to keep their doors open until they can resume normal
operations once pandemic-related disruptions to their operations have
passed.
Two institutions in Maine that would benefit from this bill are
Penobscot Valley Hospital in Lincoln, and Calais Regional Hospital, in
Calais. Both are in the midst of Chapter 11 proceedings, and both have
suffered serious revenue shortfalls due to the cancellation or scaling
back of elective procedures during the pandemic.
The bill I am introducing today is carefully targeted to address a
unique financial situation that frontline critical access hospitals
face during this public health emergency. I urge my colleagues to
support it.
____________________